Crew Energy Inc reports 54.7% CAPEX decline and 2.9% Revenue decline
02.03.2017 • About Crew Energy Inc (
$CR) • By InTwits
Crew Energy Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Crew Energy Inc is a company in decline: 2016 revenue growth was -2.9%, 5 years revenue CAGR was -10.0%
- EBITDA Margin is quite volatile: 35.6% in 2016, 32.4% in 2015, 74.8% in 2014, 52.9% in 2013, 58.0% in 2012
- Crew Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 100.8%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 112 in 2016, 248 in 2015, 446 in 2014, 276 in 2013, 281 in 2012
- The company has unprofitable business model: ROIC is at -2.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.8x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Crew Energy Inc ($CR) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 350.7 | 329.7 | 319.5 | 181.3 | 176.0 | -2.9% |
| SG&A | 18.4 | 18.6 | 19.0 | 13.2 | 11.8 | -10.7% |
| EBITDA | 203.3 | 174.3 | 238.9 | 58.8 | 62.6 | 6.4% |
| Net Income | 21.5 | -79.3 | -349.7 | -55.4 | -64.9 | |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | | |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 242.8 | 343.3 | 196.0 | 227.7 | 235.4 | 3.4% |
Cash flow
|
|---|
| Capex | 281.0 | 275.9 | 445.6 | 248.0 | 112.3 | -54.7% |
Ratios
|
|---|
| Revenue growth | 17.5% | -6.0% | -3.1% | -43.3% | -2.9% | |
| EBITDA growth | 25.6% | -14.2% | 37.0% | -75.4% | 6.4% | |
| EBITDA Margin | 58.0% | 52.9% | 74.8% | 32.4% | 35.6% | 3.1% |
| Net Income Margin | 6.1% | -24.1% | -109.4% | -30.5% | -36.9% | -6.4% |
| SG&A, % of revenue | 5.2% | 5.6% | 6.0% | 7.3% | 6.7% | -0.6% |
| CAPEX, % of revenue | 80.1% | 83.7% | 139.5% | 136.8% | 63.8% | -73.0% |
| ROIC | 0.0% | -1.0% | 6.0% | -3.2% | -2.1% | 1.1% |
| ROE | 1.9% | -6.9% | -36.7% | -6.8% | -7.8% | -1.0% |
| Net Debt/EBITDA | 1.2x | 2.0x | 0.8x | 3.9x | 3.8x | -0.1x |
Crew Energy Inc ($CR) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 39 | 40 | 46 | 50 | -18.0% | -19.4% | 14.1% | 16.4% |
| EBITDA | 20 | 3 | 25 | 15 | 81.8% | -78.0% | 36.8% | -7.2% |
| Net Income | -7 | -17 | -1 | -40 | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | | |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 245 | 244 | 230 | 235 | 35.4% | 10.8% | 7.1% | 3.4% |
Ratios
|
|---|
| EBITDA Margin | 51.9% | 7.7% | 52.9% | 28.9% | 28.5% | -20.5% | 8.8% | -7.4% |
| Net Income Margin | -17.3% | -42.2% | -2.8% | -79.5% | 15.7% | -15.4% | 41.9% | -60.6% |
Revenue and profitability
The company's Revenue decreased on 2.9%. Annual revenue decline showed slowdown in 16Q4 - revenue surged on 16.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 32.4% to 35.6% in 2016.
SG&A as a % of Revenue decreased slightly on 0.58 pp from 7.3% to 6.7% in 2016.
Net Income marign decreased on 6.4 pp from -30.5% to -36.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 63.8% in 2016. CAPEX/Revenue dropped on 19.9 pp from 83.7% in 2013 to 63.8% in 2016. Average CAPEX/Revenue for the last three years was 113%.Crew Energy Inc has spent a lot to CAPEX (179% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-2.07%) and ROE (-7.79%). ROIC increased slightly on 1.1 pp from -3.2% to -2.1% in 2016. ROE decreased slightly on 1.0 pp from -6.8% to -7.8% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.8x and Debt / EBITDA is 3.8x. Net Debt / EBITDA dropped on 0.1x from 3.9x to 3.8x in 2016. Debt increased on 3.4% while cash surged.
Management team
Crew Energy Inc's CEO is Dale O Shwed. Dale O Shwed is a founder and has 15 years tenure at the company. John G Leach is a The company's CFO. John G Leach has spent 15 years at the company.
Appendix 1: Peers in Energy
Below you can find Crew Energy Inc benchmarking vs. other companies in Energy industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | -18.4% | 141.2% |
| Seven Generations Energy Ltd ($VII) | | 115.7% | 340.2% | 39.0% | 94.4% |
| Athabasca Oil Corp ($ATH) | | 342.7% | 5.5% | -22.9% | 73.1% |
| Painted Pony Petroleum Ltd ($PPY) | | 41.3% | 56.0% | -42.5% | 60.7% |
| ONEnergy Inc ($OEG) | | | 6,002.6% | 231.5% | 57.4% |
| |
|---|
| Median (116 companies) | | 16.2% | 17.0% | -27.7% | -19.1% |
|---|
| Crew Energy Inc ($CR) | | -6.0% | -3.1% | -43.3% | -2.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($BOE) | 77.1% | 43.3% | -34.3% | 121.1% | |
| TransAlta Renewables Inc ($RNW) | | 94.4% | 94.5% | 94.5% | 91.1% |
| Serinus Energy Inc ($SEN) | 80.5% | 76.5% | 86.8% | 88.5% | |
| Advantage Oil & Gas Ltd ($AAV) | 62.0% | 84.5% | 92.5% | 88.5% | 90.3% |
| Polaris Infrastructure Inc ($PIF) | 39.9% | 33.6% | 32.0% | 86.7% | 88.6% |
| |
|---|
| Median (115 companies) | 32.0% | 32.1% | 32.4% | 33.6% | 32.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($GXO) | 59.4% | 64.5% | 70.8% | 201.9% | |
| Perpetual Energy Inc ($PMT) | 35.5% | 70.7% | 58.0% | 110.3% | |
| Petro Rio SA ($PRJ) | -4,809.7% | -6,899.7% | 28.2% | 90.7% | |
| Peyto Exploration & Development Corp ($PEY) | 86.1% | 83.2% | 86.3% | 84.6% | 80.7% |
| Innergex Renewable Energy Inc ($INE) | 111.8% | 110.0% | 82.9% | 83.4% | 83.5% |
| |
|---|
| Median (128 companies) | 25.3% | 34.1% | 28.9% | 8.1% | 27.3% |
|---|
| Crew Energy Inc ($CR) | 58.0% | 52.9% | 74.8% | 32.4% | 35.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | 1,997.8% | 712.8% | |
| WesternZagros Resources Ltd ($WZR) | | | | 385.6% | |
| Athabasca Oil Corp ($ATH) | 2,426.4% | 596.6% | 504.7% | 315.2% | 83.7% |
| TORC Oil & Gas Ltd ($TOG) | 453.8% | 466.9% | 104.5% | 229.4% | 76.3% |
| Seven Generations Energy Ltd ($VII) | 452.8% | 513.1% | 227.4% | 191.2% | 73.5% |
| |
|---|
| Median (129 companies) | 42.3% | 39.0% | 45.0% | 27.6% | 22.9% |
|---|
| Crew Energy Inc ($CR) | 80.1% | 83.7% | 139.5% | 136.8% | 63.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($ERF) | -17.3% | 10.2% | 11.5% | -55.5% | 16.3% |
| Whitecap Resources Inc ($WCP) | 7.1% | 8.1% | 9.6% | -10.6% | 10.1% |
| Ecopetrol SA ($ECP) | 29.3% | 24.4% | 16.5% | 3.0% | 9.6% |
| Parkland Fuel Corp ($PKI) | 22.3% | 23.3% | 9.9% | 7.8% | 8.6% |
| Inter Pipeline Ltd ($IPL) | 9.5% | 8.0% | 7.5% | 9.6% | 8.5% |
| |
|---|
| Median (128 companies) | 3.9% | 5.8% | 5.5% | -8.5% | -1.9% |
|---|
| Crew Energy Inc ($CR) | 0.0% | -1.0% | 6.0% | -3.2% | -2.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($PXX) | -0.2x | -0.1x | 0.2x | 3,726.1x | -0.2x |
| Paramount Resources Ltd ($POU) | 14.6x | 23.9x | 8.9x | 421.5x | -5.8x |
| Precision Drilling Corp ($PD) | 2.2x | 1.9x | 2.0x | 68.4x | 7.6x |
| Trican Well Service Ltd ($TCW) | 2.5x | 3.4x | 2.9x | 31.4x | |
| Trilogy Energy Corp ($TET) | 2.6x | 1.8x | 2.3x | 25.5x | 7.3x |
| |
|---|
| Median (78 companies) | 1.6x | 1.4x | 1.4x | 2.6x | 2.6x |
|---|
| Crew Energy Inc ($CR) | 1.2x | 2.0x | 0.8x | 3.9x | 3.8x |
